File: Ch01, Chapter 1: the IT-Based Organization in the Digital Economy
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File: ch01, Chapter 1: The Modern Organization in the Global, Web-Based Environment
True/False
1. The overall performance of an organization has little to do with how well it manages its business processes.
Ans: False Response: Business Processes and Business Process Management Difficulty: Easy
2. Business process management includes methods and tools to support the design, analysis, implementation, management, and optimization of business processes.
Ans: True Response: Business Processes and Business Process Management Difficulty: Easy
3. Information technology typically requires a small investment, but a rather long period of time.
Ans: False Response: Information Systems: Concepts and Definitions Difficulty: Easy
4. A combination of your high school grades, application essays, letters of recommendation, and Scholastic Aptitude Test (SAT) scores would be considered information.
Ans: True Response: Information Systems: Concepts and Definitions Difficulty: Easy
5. A university registrar who uses her experience with university admissions along with your high school grades, application essays, letters of recommendation, and Scholastic Aptitude Test (SAT) scores, would be applying her knowledge in your application process.
Ans: True Response: Information Systems: Concepts and Definitions Difficulty: Easy
6. A list of football scores with the names of the teams that played the games would be considered information. Ans: True Response: Information Systems: Concepts and Definitions Difficulty: Easy
7. Information technology deals with the planning, development, management, and use of management information tools to help people perform all the tasks related to information processing and management.
Ans: False Response: Information Systems: Concepts and Definitions Difficulty: Easy
8. IT services include data management, systems development, and security concerns.
Ans: True Response: Information Systems: Concepts and Definitions Difficulty: Easy
9. The information technology environment is the combination of social, legal, economic, physical, and political factors that affect business activities.
Ans: False Response: Business Pressures, Organizational Responses, and IT Support Difficulty: Easy
10. In general, labor costs are higher in developed countries than in developing countries.
Ans: True Response: Business Pressures, Organizational Responses, and IT Support Difficulty: Easy
11. Developed countries usually pay higher fringe benefits than developing countries.
Ans: True Response: Business Pressures, Organizational Responses, and IT Support Difficulty: Easy
12. Information technology is facilitating the entry of a wide variety of employees into the workforce.
Ans: True Response: Business Pressures, Organizational Responses, and IT Support Difficulty: Easy 13. Internet access in the United States is not particularly related to household income.
Ans: False Response: Business Pressures, Organizational Responses, and IT Support Difficulty: Easy
14. In general, government deregulation decreases competition.
Ans: False Response: Business Pressures, Organizational Responses, and IT Support Difficulty: Easy
15. Ethical issues are important because, if handled poorly, they can damage the image of an organization.
Ans: True Response: Business Pressures, Organizational Responses, and IT Support Difficulty: Easy
16. Build-to-stock is a strategy of producing customized products and services.
Ans: False Response: Business Pressures, Organizational Responses, and IT Support Difficulty: Easy
17. In mass production, a company produces a large quantity of identical items.
Ans: True Response: Business Pressures, Organizational Responses, and IT Support Difficulty: Easy
18. In mass customization, companies produce items in large quantity, with each item tailored to fit the desires of each customer.
Ans: True Response: Business Pressures, Organizational Responses, and IT Support Difficulty: Easy
19. The more highly skilled IT jobs are being offshored.
Ans: False Response: Why Are Information Systems Important to You? Difficulty: Easy Multiple Choice
1. The impact that information technology had on Rapa Nui in the chapter opening case was mainly which of the following? A. individual B. organizational C. societal D. global E. none of the above
Ans: C Response: Chapter Opening Case Difficulty: Medium
2. The main impacts of information technology on Rapa Nui include which of the following? A. track erosion B. encourage sustainable development C. simulate erosion patterns D. track diseases E. all of the above
Ans: E Response: Chapter Opening Case Difficulty: Medium
3. Which of the following statements is not correct? A. To succeed in today’s environment, it is often necessary to change business models and strategies. B. IT enables organizations to survive in the face of business pressures. C. IT requires small investments over a long period of time. D. Organizations can leverage their platforms to develop Web-based applications, products, and services.
Ans: C Response: Chapter Opening Case Difficulty: Medium
4. The fact that you practice continuous computing means all of the following except: A. You are surrounded by a movable information network. B. You can pull information about almost everything from anywhere all the time. C. You can push your ideas to the Web. D. Your daily routines are the same as students 20 years ago, but you can do your tasks much more quickly and with less effort.
Ans: D Response: Chapter Opening Case Difficulty: Medium 5. _____ relates to any computer-based tool that people use to work with information and to support the information processing needs of the organization. A. Information technology architecture B. Information technology infrastructure C. Information technology D. An information system E. A Computer-Based Information System
Ans: C Response: Chapter Opening Case Difficulty: Easy
6. _____ deal(s) with the planning for – and the development, management, and use of – technology to help people perform their tasks related to information processing. A. IT architecture B. IT infrastructure C. Information technology D. Management information systems E. IT services
Ans: D Response: Chapter Opening Case Difficulty: Easy
7. A(n) _____ is a collection of related activities that produce a product or a service of value to an organization. A. workflow pattern B. business process C. supply chain D. information system E. management technique
Ans: B Response: Business Processes Difficulty: Easy
8. _____ conveys understanding, accumulated learning, and expertise as they apply to a current problem. A. Data B. Information C. Knowledge D. Experience E. Wisdom
Ans: C Response: Information Systems: Concepts and Definitions Difficulty: Easy 9. _____ is (are) data that have been organized to have meaning and value to a recipient. A. Insights B. Information C. Knowledge D. Experience E. Wisdom
Ans: B Response: Information Systems: Concepts and Definitions Difficulty: Easy
10. The list of all your purchases from Amazon (books bought, price paid, dates) would be considered to be: A. data B. information C. knowledge D. experience E. wisdom
Ans: B Response: Information Systems: Concepts and Definitions Difficulty: Easy
11. If Amazon uses a list of all your purchases (books bought, price paid, dates) to be able to recommend other books to you, then Amazon is applying its _____. A. data B. information C. knowledge D. experience E. wisdom
Ans: C Response: Information Systems: Concepts and Definitions Difficulty: Easy
12. A listing of all courses offered at your university would be considered _____, where a listing of all courses required in your major would be considered _____. A. information, data B. knowledge, information C. information, knowledge D. data, information E. data, knowledge
Ans: D Response: Information Systems: Concepts and Definitions Difficulty: Easy 13. You are registering for the next semester at your university. The combination of your major, the courses you need, the prerequisites for each course, the times you take each course, and the professors teaching each section, as well as your work schedule, means that you are using _____ to select your class schedule. A. information B. knowledge C. experience D. wisdom E. data
Ans: B Response: Information Systems: Concepts and Definitions Difficulty: Medium
14. An organization’s information technology architecture: A. provides a guide for current operations. B. provides a blueprint for future directions. C. integrates the information requirements of the organization and all users. D. is analogous to the architecture of a house. E. all of the above
Ans: E Response: Information Systems: Concepts and Definitions Difficulty: Easy
15. _____ is/are the computer hardware, software, and communications technologies that are used by IT personnel to produce IT services. A. IT components B. IT services C. Information technology D. An information system E. A computer-based information system
Ans: A Response: Information Systems: Concepts and Definitions Difficulty: Easy
16. An organization’s _____ consists of the physical facilities, IT components, IT services, and IT management that will support the entire organization. A. information technology architecture B. information technology infrastructure C. information technology D. information system E. computer-based information system
Ans: B Response: Information Systems: Concepts and Definitions Difficulty: Easy 17. IT personnel use _____ to produce _____. A. IT components, IT services B. computer-based information systems, IT architecture C. IT infrastructure, IT architecture D. IT infrastructure, IT platform
Ans: A Response: Information Systems: Concepts and Definitions Difficulty: Medium
18. _____ added to _____ equals IT infrastructure. A. IT components, IT services B. IT components, IT personnel C. IT services, IT personnel D. IT personnel, computer-based information systems
Ans: A Response: Information Systems: Concepts and Definitions Difficulty: Medium
19. _____ is the integration of economic, social, cultural, and ecological facets of life, enabled by information technologies.
A. Regionalization B. Nationalization C. Globalization D. Business environment
Ans: C Response: The Global, Web-Based Platform Difficulty: Easy
20. The global, Web-based platform enables individuals to do which of the following? A. connect, compute, communicate, collaborate, and compete everywhere and all the time B. access information, services, and entertainment C. exchange knowledge D. produce and sell goods and services E. all of the above
Ans: E Response: The Global, Web-Based Platform Difficulty: Medium
21. The force behind globalization in _____ was the amount of muscle, horsepower, wind power, or steam power that a country could deploy. A. Globalization 1.0 B. Globalization 2.0 C. Globalization 3.0 D. None of these
Ans: A Response: The Global, Web-Based Platform Difficulty: Easy
22. A convergence of Friedman’s 10 flatteners is driving _____. A. Globalization 1.0 B. Globalization 2.0 C. Globalization 3.0 D. None of these
Ans: C Response: The Global, Web-Based Platform Difficulty: Easy
23. Falling telecommunications costs from the telephone, computer, satellites, and fiber-optic cable drove (or drives) globalization in _____. A. Globalization 1.0 B. Globalization 2.0 C. Globalization 3.0 D. None of these
Ans: B Response: The Global, Web-Based Platform Difficulty: Easy
24. Falling transportation costs (e.g., steam engine, railroads) drove (or drives) globalization in _____. A. Globalization 1.0 B. Globalization 2.0 C. Globalization 3.0 D. None of these
Ans: B Response: The Global, Web-Based Platform Difficulty: Easy
25. Multinational companies were the force behind globalization in _____. A. Globalization 1.0 B. Globalization 2.0 C. Globalization 3.0 D. None of these
Ans: B Response: The Global, Web-Based Platform Difficulty: Easy 26. The global, Web-based platform appeared in _____. A. Globalization 1.0 B. Globalization 2.0 C. Globalization 3.0 D. None of these
Ans: C Response: The Global, Web-Based Platform Difficulty: Easy
27. The force behind globalization in _____ is (was) biotechnology, cloning, and gene sequencing. A. Globalization 1.0 B. Globalization 2.0 C. Globalization 3.0 D. None of these
Ans: D Response: The Global, Web-Based Platform Difficulty: Easy
28. The global economy began to appear in _____. A. Globalization 1.0 B. Globalization 2.0 C. Globalization 3.0 D. None of these
Ans: B Response: The Global, Web-Based Platform Difficulty: Easy
29. Globalization 1.0 focused on _____, Globalization 2.0 focused on _____, and Globalization 3.0 focuses on _____. A. companies, groups, countries B. countries, groups, companies C. countries, companies, groups D. groups, companies, countries E. groups, countries, companies
Ans: C Response: The Global, Web-Based Platform Difficulty: Medium
30. The fall of the Berlin Wall had all of the following consequences except: A. collapse of the Soviet Union B. the rise of the European Union C. a move toward centrally planned economies D. people thinking about the world as a single economy
Ans: C Response: The Global, Web-Based Platform Difficulty: Medium
31. The consequences of uploading include all of the following except: A. growth of the open-source software movement B. shift toward a static, passive approach to media C. increased collaboration over the Web D. growth of blogs and Wikis
Ans: B Response: The Global, Web-Based Platform Difficulty: Medium
32. _____ enables computer applications to interoperate without human interaction. A. Supply-chaining B. Informing C. Uploading D. Work-flow software E. Outsourcing
Ans: D Response: The Global, Web-Based Platform Difficulty: Easy
33. _____ involves taking a specific function that your company was doing itself, having another company perform that same function for you, and then integrating their work back into your operation. A. Informing B. Insourcing C. Offshoring D. Outsourcing E. Uploading
Ans: D Response: The Global, Web-Based Platform Difficulty: Easy
34. If UPS is taking Dell computers at the loading dock, and then shipping them to Dell customers, then Dell is practicing which of the following? A. informing B. insourcing C. offshoring D. outsourcing E. uploading
Ans: B Response: The Global, Web-Based Platform Difficulty: Medium
35. _____ means that you can create content and send or post it to the Web. A. Informing B. Insourcing C. Delivering D. Participating E. Uploading
Ans: E Response: The Global, Web-Based Platform Difficulty: Easy
36. If your university hires a company to manage its entire human resources function, then your university is practicing _____. A. insourcing B. outsourcing C. offshoring D. temporary hiring E. consulting
Ans: B Response: The Global, Web-Based Platform Difficulty: Medium
37. The zero-footprint IT model provides all of the following to organizations except: A. the ability to react quickly to changing business conditions B. “greener” business operations C. the ability to move systems and data rapidly to new offices D. a reduced carbon footprint E. reduced staffing
Ans: C Response: IT’s About Business 1.1 Difficulty: Difficult
38. The zero-footprint IT model is enabled by all of the following except: A. the global, Web-based platform B. faster, cheaper computers C. the Internet D. high-speed communications E. hiring additional employees
Ans: E Response: IT’s About Business 1.1 Difficulty: Difficult 39. Market pressures include which of the following? A. global economy B. moderately strong competition C. homogeneous workforce D. weak customers E. high-cost labor offshore
Ans: A Response: Business Pressures, Organizational Responses, and IT Support Difficulty: Easy
40. In general, labor costs are _____ in developed countries than in developing countries. A. lower B. higher C. about the same D. decreasing faster E. decreasing slower
Ans: B Response: Business Pressures, Organizational Responses, and IT Support Difficulty: Easy
41. The workforce in developed countries has all of the following characteristics except: A. it is more diversified B. including more women C. including more single parents D. including fewer persons with disabilities E. including more minorities
Ans: E Response: Business Pressures, Organizational Responses, and IT Support Difficulty: Easy
42. Today’s customers have which of the following characteristics? A. less knowledge about products B. less sophistication C. difficulty in finding information about products D. higher expectations E. difficulty in comparing prices
Ans: D Response: Business Pressures, Organizational Responses, and IT Support Difficulty: Easy
43. The digital divide is an example of which type of societal pressure? A. social responsibility B. government regulations C. protection against terrorism D. ethics E. information overload
Ans: A Response: Business Pressures, Organizational Responses, and IT Support Difficulty: Easy
44. The impact of the global, Web-based platform on microlenders such as Kiva includes which of the following? A. bringing increased numbers of borrowers and donors together B. reducing transaction costs C. making the lending process more efficient D. reducing administrative costs E. all of the above
Ans: E Response: IT’s About Business 1.2 Difficulty: Medium
45. Verizon’s centralized IT department performs all of the following roles except: A. ensuring that the business operates efficiently. B. directly supporting the strategy of the individual business units. C. helping define the company’s strategy. D. keeping abreast of new technologies. E. examining ways to incorporate new technologies into the operations of the business.
Ans: B Response: IT’s About Business 1.2 Difficulty: Difficult
46. When identical items are produced in large quantities, it is called: A. strategic systems. B. customer focus. C. continuous improvement. D. mass production. E. mass customization.
Ans: D Response: Business Pressures, Organizational Responses, and IT Support Difficulty: Easy
47. When customized items are produced in large quantities, it is called: A. strategic systems. B. customer focus. C. continuous improvement. D. mass production. E. mass customization.
Ans: E Response: Business Pressures, Organizational Responses, and IT Support Difficulty: Easy
48. The Bodymetrics Body Scanner is best an example of: A. mass production. B. customer focus. C. real-time customer input. D. mass customization. E. continuous improvement.
Ans: D Response: Business Pressures, Organizational Responses, and IT Support Difficulty: Medium
49. Which of the following is not a fact about IT careers? A. The four-fastest growing U.S. jobs that require college degrees from 2002 through 2012 are IT-related. B. Highly-skilled IT jobs will typically not be offshored. C. There are no computing jobs. D. MIS majors usually receive high starting salaries.
Ans: C Response: Why Are Information Systems Important to You? Difficulty: Medium
50. Product lifecycle management software has enabled Santa Cruz Bicycles to do all of the following except: A. speed up simulations of the bicycle’s suspension. B. capitalize on the company’s patented suspension. C. produce prototypes more slowly, but more accurately. D. speed up the overall production process. E. improve quality control.
Ans: C Response: Chapter Closing Case Difficulty: Difficulty
Short Answer
1. Differentiate between management information systems and information technology.
Response: Chapter Opening Case Difficulty: Medium 2. Describe examples of business processes at your university.
Response: Business Processes Difficulty: Medium
3. Differentiate among data, information, and knowledge.
Response: Information Systems: Concepts and Definitions Difficulty: Medium
4. Differentiate between information technology architecture and information technology infrastructure.
Response: Information Systems: Concepts and Definitions Difficulty: Medium
5. Describe the global, Web-based platform proposed by Friedman.
Response: The Global, Web-Based Platform Difficulty: Medium
6. Describe what Friedman calls “the steroids.”
Response: The Global, Web-Based Platform Difficulty: Medium
7. Discuss the business pressures that face organizations today.
Response: Business Pressures, Organizational Responses, and IT Support Difficulty: Medium
8. Discuss organizational responses to today’s business pressures.
Response: Business Pressures, Organizational Responses, and IT Support Difficulty: Medium
9. Differentiate between mass customization and mass production.
Response: Business Pressures, Organizational Responses, and IT Support Difficulty: Medium 10. Describe why information systems and information technologies are integral to your lives.
Response: Why Are Information Systems Important to You? Difficulty: Medium
Essay
1. Explain by giving examples of how information technology impacts individuals, organizations, and the globe.
Response: Chapter Opening Case Difficulty: Hard
2. What does it mean to say that you practice continuous computing?
Response: Chapter Opening Case Difficulty: Hard
3. Discuss Friedman’s three stages of globalization.
Response: The Global, Web-Based Platform Difficulty: Hard
4. Describe how Google and Amazon (among other companies) are using the global, Web-based platform to develop and deliver applications.
Response: The Global, Web-Based Platform and chapter opening and closing cases Difficulty: Hard
5. Describe Friedman’s 10 flatteners.
Response: The Global, Web-Based Platform Difficulty: Hard
6. What does social responsibility mean and how does IT contribute to social responsibility?
Response: Business Pressures, Organizational Responses, and IT Support Difficulty: Hard 7. Describe how the One Laptop per Child project contributes to closing the digital divide.
Response: Business Pressures, Organizational Responses, and IT Support Difficulty: Hard
8. Are the IT platforms of Google and Amazon considered to be strategic systems? Support your answer.
Response: Business Pressures, Organizational Responses, and IT Support Difficulty: Hard
9. Discuss and debunk four myths about careers in information technology.
Response: Why Are Information Systems Important to You? Difficulty: Hard
10. Is the product lifecycle management system at Santa Cruz Bicycles a strategic information system? Why or why not? Support your answer.
Response: Chapter Closing Case Difficulty: Hard